Can I Be My Own Registered Agent?

When you form a state-registered business (such as a limited liability company or corporation), one of the most important steps of the formation process is designating a registered agent for your company. There are other vital elements, such as coming up with a good name for your company and getting your licenses and permits. Still, choosing a registered agent is such a crucial step that the state won’t let you form your business without one.

We get lots of questions from our readers about the role of the registered agent, and one of the main ones we frequently hear is, “Can I be my own registered agent?” While the short and simple answer is “yes,” there’s quite a bit more to it than that. With this in mind, we decided to create this article in order to discuss all the relevant aspects of serving as your company’s own registered agent.

What is a registered agent?

Let’s get the basics out of the way before we get into the nuances. The registered agent is an individual or business entity that accepts service of process and important official state notices on behalf of your business. Then, your agent will inform the business owners of the delivery and forward the notices to them. The specific documents that your registered agent handles include service of process for lawsuits and documents from your Secretary of State’s office.

You have several options for who can serve as your registered agent. As far as the do-it-yourself options go, you can designate yourself as your company’s registered agent, you can recruit a friend or family member to handle it for you, or you can assign the role to one of your employees. If you’re more interested in having a professional take the reins of this position, you could designate your lawyer or accountant, or you can hire a registered agent service.

What are the requirements for registered agents?

Some states have their own wrinkles when it comes to registered agent eligibility, but for the most part, the rules and regulations are roughly the same no matter where you form your business entities.

Regardless of who you select as your registered agent, they will have to be present at the address indicated on your formation documents during all normal business hours.

Beyond that, the registered agent’s office must be a physical address (not a P.O. box) located in the same state where your business is registered. In addition, if your registered agent is an individual instead of a business entity, there’s a requirement in most states that they be at least 18 years of age.

Can I be my own registered agent?

It’s not uncommon at all for entrepreneurs to designate themselves as the registered agent for their business, but that doesn’t mean it’s a good idea. While you can save some money by not paying someone else to serve as your registered agent, that’s the only positive aspect of being your own agent. Listing oneself as the business’s registered agent comes with significant privacy risks and responsibilities, such as being responsible for accepting legal documents.

We already mentioned the requirement for registered agents to be available at their physical address during all standard business hours, which is a serious drawback for fulfilling this role yourself. Another major problem is that if you receive service of process at your business location, you run the risk of your clients and/or employees seeing it happen. Being served with a lawsuit in front of customers is bad for business.

The other problem we’ll point out in this situation is that you won’t be able to expand your business to additional states if you serve as your own agent. The reason for this is because you need to have a registered agent located in each state where you do business, and you obviously can’t be in multiple states at the same time.

Can I have a friend, family member, or business associate serve as my registered agent?

Quite a few businesses choose one of these options for a registered agent, and in many ways, they serve as extensions of the do-it-yourself method. However, some businesses choose to hire registered agents due to the specific advantages and circumstances, such as the convenience of having a dedicated professional receive legal notices.

The issue with most of these choices is that you encounter many of the same problems that you would if you were your own agent, especially the issue of not being able to expand if your registered agent doesn’t have offices in multiple states.

Whether it’s an employee, a business partner, a friend, or a family member, the expansion issue isn’t the only one that applies to these people. Do you really want to put any of these people in a position where they would need to be present at the address provided to the state during all standard business hours?

The issue of having people witness a sensitive document delivery is still present with these options, as well. Hiring a registered agent can provide privacy and convenience, helping ensure that sensitive documents are handled professionally and discreetly.

Can I hire someone to be my registered agent?

Before we get to our preferred option, we’ll briefly state that some people have their attorney or accountant provide registered agent service, but we don’t typically advise our readers to do this, either.

As you can probably guess by now, this option also runs into the issue of not being able to expand to additional states. Also, lawyers and accountants usually charge high fees to be your registered agent.

With all that said, the option that we strongly recommend to just about every business entity in America is hiring a professional registered agent service. These companies make their living providing top-notch registered agent service to companies of all sizes, and most of them also have registered agent offices in all 50 states, making potential expansion a breeze.

These reliable and trustworthy service providers typically have low price points for registered agent service, as well. The privacy these companies allow you to maintain is another big advantage.

Obviously, we prefer registered agent services to the other options, but how do you choose the right one for your company? If you want an in-depth look at all the major national registered agent service providers, check out our guide to the top registered agent options.

Overall, ZenBusiness, LegalZoom, Northwest, and Bizee are the services that come to mind for most entrepreneurs. Check out ZenBusiness customer reviews.

Choosing a Registered Agent Service Provider

When choosing a registered agent service provider, there are several factors to consider to ensure you select the best option for your business. First, look for a provider with extensive experience in handling registered agent services for businesses in your state. Experience is crucial as it helps ensure the provider is familiar with state-specific laws and regulations.

Verify that the provider has a physical address in the state where your business is formed. This is essential for receiving and forwarding important documents on your business’s behalf. A physical address also helps ensure that the provider can meet the registered agent requirement of being available during regular business hours.

Customer service is also key. Choose a provider with excellent customer service so you can easily contact them with any questions or concerns. Good customer service can make a significant difference in your overall experience with the registered agent service.

Finally, consider the cost. Compare prices among different providers to ensure that you get the best value for your money. While cost is important, it should not be the only factor in your decision. The quality of service and the provider’s reliability are equally important.

By considering these factors, you can choose a reliable and trustworthy registered agent service provider to handle your business’s registered agent needs.

Conclusion

While you’re legally allowed to serve as your company’s own registered agent, we don’t think that it’s advisable in most cases. Considering how affordable professional registered agent services can be, it’s just not worth the hassles and privacy concerns to be your own registered agent.

It should be noted that each of the options discussed in this guide has its place and that, depending on the details of your business, some of them may make more or less sense for you. Still, for most of our readers, the peace of mind and reliable service provided by professional registered agents are absolutely worth the cost.